I’m Facing Foreclosure. Can I Use Bankruptcy?

New Jersey foreclosure lawyerThe potential loss of your home may present a situation that is so difficult that you do not know what to do next. If you are already in foreclosure and are considering bankruptcy, you likely have many different concerns on your mind. You may be wondering whether or not the lender may still be able to move forward with foreclosure action after you file for bankruptcy.

Foreclosure and Bankruptcy

There are options to buy extra time, including filing for bankruptcy. This might not be a permanent fix for foreclosure issues, however, unless you continue to pay for the mortgage. Knowing what will happen to your home in Chapter 13 or Chapter 7 filing can assist you to make the right decision about whether or not you should file for bankruptcy.

If your petition is filed before foreclosure is completed or before foreclosure is initiated, an automatic stay stops lenders from continuing any collection activities. This also delays a pending foreclosure. This becomes effective immediately after the bankruptcy is filed. If you have already stopped making mortgage payments, the lender may opt to file a motion for relief from a stay. If the bankruptcy awards the motion, then the lender is allowed to move forward with the foreclosure.

A lender might also choose to wait until the bankruptcy case has been finished to move forward with the foreclosure. Many people who go through bankruptcy get relief or discharge from individual liability for many types of debts. This is given in Chapter 7 after creditors have had the chance to object to discharge. In Chapter 13, this is given after the finalization of the payment plan. This will eliminate your personal liability for that debt.

A borrower could not be held accountable for repaying the deficiency. Consulting with a bankruptcy attorney can help you clarify what issues you may be facing in your individual case and how you should move forward to best protect yourself and your future.

Schedule a Consultation With a New Jersey Bankruptcy Attorney

If you are in need of an experienced attorney in foreclosure, real estate, and bankruptcy that can provide you with all available options, then you need Joel R. Spivack, Esq. The New Jersey bankruptcy lawyer has been successfully servicing clients for more than 30 years. He understands the bankruptcy process and what it takes to get you through it. Don’t wait for your fresh financial start, contact us today by filling out the online form.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly at 856-488-1200.

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Attorney Joel R. Spivack is an experienced bankruptcy and residential real estate transactions lawyer in Cherry Hill, New Jersey. Clients come to us for legal services, but what we really provide is peace of mind. For more than 30 years, Attorney Spivack has helped people make wise, informed decisions about bankruptcy filings, debt relief options and residential real estate transactions.
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